The central bank bonanza continues with the BOE today

The Fed gave market players what they wanted with a 50 bps rate cut yesterday. And the aftermath so far has been… fairly calm to be fair. The dollar did drop on the kneejerk reaction yesterday but that didn’t last too long. Treasury yields are bouncing back up and that’s creating for some mixed moves among major currencies at least.

As for stocks, it did fall yesterday but US futures are looking to bounce back strongly today. It’s all setting up for a rather swingy end to the week with most of the action likely to come in US trading.

Anyway, the central bank bonanza doesn’t just stop at the Fed this week. The BOE is next on the cards before we get to the BOJ tomorrow. Bailey & co. is expected to keep the bank rate unchanged today, with a vote of 7-2. The two dissenters are likely to be the more dovish members i.e. Dhingra and Ramsden.

Traders are pricing in ~81% odds of there being no change today. As such, the decision should not be one to rock the boat too much in sterling and broader markets on the day.

0600 GMT – Switzerland August trade balance data0800 GMT – Eurozone July current account balance1100 GMT – BOE announces its September monetary policy decision

That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.

This article was written by Justin Low at www.forexlive.com.